By Denise A. Valdez, Reporter
MacroAsia Corp. recorded a 3% increase in its bottom line, as elevated costs dampened the sustained revenue growth of its in-flight catering units.
The listed firm owned by tycoon Lucio C. Tan said its attributable net income stood at P1.05 billion in 2018, from P1.02 billion in the previous year.
Revenues were up 22.5% to P3.6 billion, but was outpaced by a 29% increase in total direct costs to P2.77 billion.
“The increase in the current period is due to the higher labor costs of our ground-handling and catering subsidiary, driven largely by increases in manpower count due to the growth in business volume…,” it said in a regulatory filing.
MacroAsia said its ground-handling business is preparing for the opening of Terminal 2 in the Cebu airport.
The company’s main source of revenues continued to be its in-flight catering services, accounting for 46% of the total. Revenues from in-flight catering grew 8% to P1.66 billion in 2018, driven by the larger volume of meals served to its airline clients. It served 3.6 million meals in 2018 versus 3.5 million in 2017.
The ground-handling and aviation segment added P1.46 billion to the total revenues, 42% higher than the P1.03 billion it recorded in 2017.
“The growth is due to continuous passenger and ramp services for the domestic and international flights of PAL and PAL Express,” it said, adding it took over the ground-handling services for new foreign clients last year increasing the number of flights handled by 30% to 120,862.
MacroAsia’s water business jumped 90% last year to P271.04 million, on the back of its acquisition of Summa Water Resources, Inc. and revenues from Naic Water Supply Corp. (NAWASCOR) and Solano Water.
“Management remains confident about the Group’s future and its ability to grow profits. (Lufthansa Technik Philippines, Inc.) stands to benefit from a robust growth in its line maintenance business, as the planes for servicing from its core client which stood at 61 aircrafts at the end of last year, has currently grown to 79 aircrafts as of the year ended,” MacroAsia said.
The company operates five subsidiaries namely: MacroAsia Catering Services, Inc. (MACS); MacroAsia Airport Services Corp. (MASCORP); MacroAsia Air Taxi Services, Inc. (MAATS); MacroAsia Properties Development Corp. (MAPDC); and MacroAsia Mining Corp. It also has two associated companies, Lufthansa Technik Philippines, Inc. — a joint venture with MacroAsia Corporation (LTP), and Cebu Pacific Catering Services, Inc (CPCS).